Even if your business is doing extremely well, there might be an unexpected turn of events that could force you to sell your business. A death in the family or a need to relocate, for example, sometimes comes up suddenly.

The competition is heating up and the economy is slowing down. It is time to get your ducks in a row as clients tighten their belts and purse strings and think twice before making any purchases.

Normally, a recession is also accompanied by high inflation. This will increase the pressure on your expenses. The bad news is that inflation will also attack your employees as well, and they could come to you complaining about the increased cost of living - and demanding higher salaries, more.

During a recession, customers usually zip their wallets and hold them tight. This could be a problem for your small business. If customers don’t spend more, then you could have financial difficulty in increasing sales and meeting your expenses. It could even threaten your business’ very survival.

In these economically tough times, money is hard to come by, especially if you are thinking of starting a new business. The Small Business Administration, or the SBA, can help you to not only procure a loan for your startup business, but also help you with financing an existing one.

Just as you would place fire extinguishers at various places in your home and business place to extinguish an unwanted fire, you should also have a plan to blunt the recession’s impact on your small business.

With economists crying out ‘recession’ at every chance they get, it will pay off if you are ready to face the downturn - if it has not yet hit your business.

Economic cycles, or business cycles as they are also known, are basically fluctuations in the economy that end up impacting various industries and business. When the economy is in full swing, this fluctuation is known as a boom - and when the economy is down and inflation is up, then that cycle is known as a recession.

Plainly speaking, when the economy is booming and everyone is having fun and partying hard, then there are obviously no financial woes. It is when the partying stops and the bill for the party is presented that the recession starts.

Whether the United States – and most of the western world - is in the midst of a recession or not is being debated. But if you are running your own business, this could mean that tougher times are ahead. It is better to be prepared now than to get caught up in the tide later on.